Food delivery company Baemin to exit Vietnam

A Baemin representative confirmed the shutdown with VnExpress Friday, adding that its customers had been informed.

"Baemin’s decision to leave Vietnam was urged by global economic challenges and local intense competition," the company said.

The parent company of Baemin Vietnam, Delivery Hero, said that it wants to focus on its biggest markets now.

In the next few weeks, the firm will prioritize fulfilling its commitments with all of its employees, drivers and eateries.

Baemin told its Vietnam employees in September that the company would scale down its countrywide operations due to competitive challenges.

The company first started its services in Vietnam in 2019 when Vietnam’s food delivery market saw many newcomers seeking their share of the large pie using "cash burning" strategies.

But in August, co-founder and CEO of Deliver Hero Niklas Östberg told Reuters that the overall Asian market was good with the exception of Vietnam, in which the company saw no profit returns, and could not envision any even in the long term.

Baemin held a 12% share of Vietnam’s food delivery market last year, compared to Grab’s 45% and ShopeeFood’s 41%, according to Singapore-based market research firm Momentum Works.